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Facts
Sarav Sewa Charitable Society, provisionally registered, applied for final registration u/s 12A(1)(ac)(iii), but the CIT(E) rejected it. The rejection was based on the ground that provisional registration was granted under a wrong section code, as the assessee had already commenced its activities in FY 2021-22 and should have applied under a different clause (12A(1)(ac)(vi)(B) instead of 12A(1)(ac)(vi)(A)). The assessee contended its activities are genuine and the error was technical.
Held
The Tribunal held that a technical error in mentioning a wrong section code is a curable defect and not a valid reason for rejecting registration, especially when the genuineness of the charitable activities is undisputed and there is no violation of Section 12A(4). Citing previous decisions, the Tribunal concluded that the CIT(E) should treat the application as filed under the correct provisions and consider it afresh on its merits.
Key Issues
Whether the CIT(E) can reject a charitable trust's final registration application solely on the ground of a technical error in selecting the provisional registration section code, when the genuineness of its activities is not disputed.
Sections Cited
12A(1)(ac)(iii), 12AB, 12AB(4), 12A(1)(ac)(vi)(A), 12A(1)(ac)(vi)(B), 11, 12, 10(23C)
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Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR
Before: SH. MANOJ KUMAR AGGARWAL & SH. UDAYAN DASGUPTA
This appeal is filed by the assessee against the order of the ld. CIT (Exemptions), Chandigarh, dated 09.12.2024 rejecting the application for registration u/s 12A(1)(ac)(iii) of the Act filed by the assessee on 30.06.2024 on the ground that the provisional registration has been granted under a wrong section code inasmuch as, the assessee has already commenced its activities during the financial year 2021-22.
Grounds of appeal taken by the assessee in Form No. 36 are as follows:
“1. On the facts and circumstances of the case, CIT(E) erred in not converting the provisional registration into final registration u/s 12A(1)(ac)(iii). The rejection order passed by CIT(E) in form 10AB is against the facts and provisions of law.
2. That the CIT(E) has erred in rejecting the application filed in form 10AB for registration under section 12AB without appreciating the fact that the assessee has duly furnished the copies of aims and objects along with the application filed u/s Form 10AB. That the CIT(E) has erred in not appreciating the fact that the expenses incurred per the financial statements are in line with the aims and objects of the society. Without prejudice to above, not filing of MOA/ Rules cannot be considered as a ground for rejection of application.
3. That the CIT(E) has erred in rejecting the application filed in Form 12AB by failing to consider that the society was established on 01-08-2016 with the primary objective of promoting social welfare for the general public. Additionally, the society is actively involved in providing services at places of worship, offering free transportation to individuals visiting religious sites, and engaging in charitable activities in the State of Punjab and neighboring states.
4. That the Ld. CIT(E) has erred in rejecting the application on the ground that it failed to ascertain the objects and activities carried out by the appellant society.
5. That the Ld. CIT(E) has erred in rejecting the application without providing any adverse material regarding genuineness of activities of the society.
That the CIT(E) has exceeded his jurisdiction by rejecting the application filed in form 10AB on 30.06.2024 by superseding any registration granted u/s 12AB dated Assessment Year: N.A. 29.12.2023 by CIT(E). That the CIT(E) failed to appreciate that the earlier registration was granted by the department and if such a mistake of not selecting the appropriate clause has been pointed out in earlier provisional registration, then in that circumstance, the rejection of final registration was not warranted.
That the CIT(E) has failed to appreciate that the cancellation of registration is not proper as the same does not fulfill the parameters as specified in section 12AB (4),
8. The appellant craves leave to add, amend or alter any of the grounds of appeal.”
Brief facts emerging from the records are that the assessee provisionally registered on 29.12.2023 and has applied for final registration u/s 12A(1)(ac)(iii) in Form 10AB within time. The society has been established on 1st August, 2016 with the primary objective of promoting social welfare for the general public and was engaged in other social activities like offering free transportation to individuals visiting religious sites, in and around Punjab State. The provisional registration has been granted on 29.12.2023 and as appearing from records, the said application for registration should have been applied u/s 12A(1)(ac)(vi)(B) but in the instant case, the application has been made under a wrong section code 12A(1)(ac)(vi)(A).
The ld. AR of the assessee in course of hearing submitted that the ld. CIT(E) was not legally justified in rejecting the application simply because the application for provisional registration was filed under a wrong section code and the said registration has been granted on 29.12.2023 and in case of any error in the application, the said which could have been rectified at that particular of period of time.
He further submitted that the registration already granted u/s 12AB cannot be simply revoked without any specified violation of provisions of sub-section (4) of section 12AB, which is not the case here, and the ld. CIT(E) has not doubted the genuineness of the activities of the society and there is no adverse finding regarding the expenses incurred as per enclosed financial statements which are perfectly in accordance with the aims and objects of the society. He further stated that before rejection of the application for registration, a fair opportunity of being heard should have been allowed to the assessee and in the instant case, no such opportunity has been allowed before rejection of its registration application which certainly violates the principles of natural justice.
6. He prayed that the matter may be remanded back to the files of the ld. CIT(E) to consider the application for registration afresh, especially considering the fact that the genuineness of the activities of the society has not been doubted and there is no finding that the income of the assessee has been applied for any other purpose other than what is mentioned in the objects, and he prayed for granting of the registration.
We have considered the rival submission and materials on record and we find that the assessee has been granted provisional registration on 29.12.2023 and the application for final registration u/s 12A(1)(ac)(iii) has been filed within time and there is no finding that the activity carried out by the society is not genuine or there are any defects regarding utilization of financials.
We are of the opinion, that registration cannot be rejected simply on the basis of mentioning of a wrong section code which is a curable defect and the coordinate bench has held that simply on the basis of an inadvertent error in mentioning a wrong section code, cannot be so fatal to reject the registration without considering the fact that there is no violation of provisions of section 12A(4) of the Act, 1961.
On this matter we refer to our decision in where it has been observed by us as under:
“7. We have heard the rival submissions and considered the materials on record and we find that the assessee society was granted provisional registration on 20th February 2024 for the period assessment year 2024-25 to 2026-27 and the assessee has applied for final registration on 19th August 2024 well within time and the said registration application has been rejected without any opportunity of clarification on the ground that the application has been made under a wrong section code.
7.1 We also find that the genuineness of the charitable activities carried out by the said society has not been disputed and the financial of the said society has also been incurred for the purpose of rendering its objects.
7.2 Further we also refer to the scope and applicability of section 12A(1)(ac)(iv)(A) and section 12A(1)(ac)(vi)(B):
Section Particulars Remarks 12A(l)(ac)(vi)(A) Applicable to newly established That Ld. CIT(E) rejected the institutions application solely that have not yet commenced on technical grounds—first, holding their activities that since 12A(l)(ac)(vi)(B) Applicable to institutions that have the appellant commenced its activities in F.Y. commenced activities and have not excluded 2021-22, the provisional registration u/s any income under sections 11, 12, or 10(23C) prior to filing the 12A(l)(ac)(vi)(A) granted under registration application. Form 10AC on 20.02.2024 was invalid as the option required to be selected was 12A(l)(ac)(vi)(B) instead of 12A(l)(ac)(vi)(A). That the CIT(E) rejected the final registration filed under 10AB dated 19.08.2025 without pointing out any adverse comments on the genuineness or merits of the appellant's activities.
7.3 We also observe that the assessee was actually supposed to have filed the application u/s 12A(1)(ac)(vi)(B) of the Act instead of he has wrongly filed u/s 12A(1)(ac)(vi)(A) of the Act which has resulted in this rejection even though, the genuineness of the activities has never been disputed by the ld. CIT(E).
7.4 We find that the coordinate bench of this tribunal in the case of IIT Ropar Technology Business Incubator Foundation in ITA 612/Asr/2024 dated 20th August 2025 has held that an application filed in time mentioning a wrong section, cannot be a ground for rejecting the application.
7.5 We also find that similar views has been taken by various other benches of the tribunal in the case of Society For Technology Business Incubator vs. CIT(E) in ITA 1134/Chd/2024 where it has been held that registration cannot be rejected for any curable defect like making an application under a wrong section or in a wrong Form and in such a situation it is duty of ld. CIT(E) to inform the assessee about the said mistake and ask the assessee to rectify it rather than to reject the application for merely such a technical mistake.
7.6 As such, we hold that in the instant case, since there is no adverse finding by the ld. CIT(E) regarding the genuineness of the activities or on merits of the case, or on any violation of section 12A(4) of the Act, the application filed by the assessee may be treated as filed under the correct provision, and to consider the application for registration on merits. As such, we remand the matter back to the file of the ld. CIT(E) for considering the application for registration afresh as per provisions of law.”
As such, relying on the coordinate bench decisions, we are of the opinion that the interest of justice will be served if the matter is remanded back to the files of the ld. CIT(E) for considering the application for registration afresh as correctly filed under the correct provisions and to proceed with the registration process as per provisions of law.
Order pronounced in accordance with Rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963 as on 21.11.2025